MASTER OF BUSINESS ADMINISTRATION
INTERNATIONAL PROGRAM

RESEARCH PROJECT
(BMBR5103)

ORGANIZATIONAL COMMITMENT
AT KIDO (VIETNAM)

STUDENT’S FULL NAME

: VO NGOC KHANH PHUONG

STUDENT ID

: CGS00019374

INTAKE

: MARCH 2015

ADVISOR’S NAME & TITLE : DR. KHAI NGUYEN

Ho Chi Minh City, July 2016


ADVISOR’S ASSESSMENT

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ADVISOR’S SIGNATURE
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(July 2016)
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NGUYEN THE KHAI (DBA)


ACKNOWLEDGMENTS

I would like to express my profound gratitude and deep regards to DR. KHAI
NGUYEN for his supervision, and constant guidance in this report. His guidance
and help will encourage me along this path of live.

Also, I’d like to thank KIDO group and the participants in my survey, who have
willingly shared their precious time during the process of interviewing.

I would like to thank my loved ones, who have supported me throughout entire

process, both by keeping me harmonious and helping me putting pieces together. I
will be grateful forever for your love.

Once again, I thank very much to all.

Vo Ngoc Khanh Phuong Student


CONTENTS

ABSTRACT

1

PART ONE

INTRODUCTION

1

1

About KIDO group

2

Organization structure

13


3

Research problem statement

18

4

Research objective

19

5

Research scope

19

6

Significance of research

20

1

PART TWO
7

LITERATURE REVIEW

Definition of Constructs

8

21
21

Organizational Commitment

21

Supportive and Non-Controlling Supervision

23

Supervisory Support

24

Role Justice

24

Distributive, Procedural, and Interactive Justice

24

Argument for the relationship among the constructs

26


Maslow’s theory

26

Alderfer’s ERG theory

30

Adams’s Equity theory

31

Hackman and Oldham's Job Characteristics

32

Meyer and Allen’s three-component model

34

Albert Bandura’s Social Cognitive theory

37


9
10
PART THREE
11


12
PART FOUR
13

14

15

PART FIVE

Hypotheses

41

Research model

42

METHODS
Data collection

42
42

Design template scale

42

Data collection progress


50

Data analysis

51

RESULTS
Cronbach’s Alpha

52
52

Cronbach’s Alpha standard applied

52

Cronbach’s Alpha of constructs

52

Statistics information

54

Descriptive statistics

54

Correlation statistics


54

Hypotheses testing

55

Hypothesis proposed (H1)

56

Hypothesis proposed (H2)

56

Hypothesis proposed (H3)

57

Hypothesis proposed (H4)

58

CONCLUSIONS

60

16

Discussion


60

17

Limitation of research

61

18

Recommendation

61

REFERENCES

63
63

APPENDIX
Appendix 1: Survey

66

Appendix 2: Presentation

73



FIGURE & TABLE
FIGURE
Figure 1

Maslow's hierarchy of needs

27

Figure 2

Alderfer’s ERG theory

30

Figure 3

Hackman and Oldham's Job Characteristics

33

Figure 4

Research model of Job Satisfaction

42

Table 1

Organizational Commitment Scale


43

Table 2

Supportive and Non-Controlling Supervision Scale

44

Table 3

Supervisory Support Scale

44

Table 4

Role Justice Scale

47

Table 5

Distributive, Procedural, and Interactive Justice Scale

48

Table 6

Time table for data collection progress


51

Table 7

Cronbach’s Alpha - Internal Consistency

52

Table 8

Cronbach’s Alpha of Organizational Commitment

52

Table 9

Cronbach’s Alpha of Supportive and Non-Controlling Supervision

TABLE

53

Table 10

Cronbach’s Alpha of Supervisory Support

53

Table 11


Cronbach’s Alpha of Role Justice

53

Table 12

Cronbach’s Alpha of Distributive, Procedural, and Interactive Justice 53

Table 13

Descriptive statistics

54

Table 14

Correlation statistics

54

Table 15

Model summary of H1

56

Table 16

Coefficients of H1


56

Table 17

Model summary of H2

57

Table 18

Coefficients of H2

57

Table 19

Model summary of H3

57

Table 20

Coefficients of H3

58

Table 21

Model summary of H4


58

Table 22

Coefficients of H4

58


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ABSTRACT
The purpose of this research is to test the relationship between variables in the model
such as Supportive and Non-Controlling Supervision; Supervisory Support; Role
Justice; Distributive, Procedural, and Interactive Justice with Organizational
Commitment. The empirical study result was conducted in KIDO group with 500
employees.
And SPSS software is a tool that is used to analysis data in this research. The collected
data were analyzed through factor analysis, Cronbach’s alpha, descriptive statistics,
correlation, and multiple regression analysis. The research showed that there are four
factors influencing Organizational Commitment are Supportive and Non-Controlling
Supervision; Supervisory Support; Role Justice; Distributive, Procedural, and
Interactive Justice. Moreover, the research provides some recommendations
implications for managers to raise the level of commitment with organization of the
employees. Finally, the research also point out the limitation and future directions in
the same research
Key


word:

Organizational

Commitment;

Supportive

and

Non-Controlling

Supervision, Supervisory Support; Role Justice; Distributive, Procedural, and
Interactive Justice and KIDO group.

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PART ONE: INTRODUCTION
About KIDO group

KIDO CORPORATION at a glance
 Head office

138-142 Hai Ba Trung, Dakao Ward, District 1, HCMC,

Vietnam

 Founders

The company was founded by Kim Thanh Tran, Le Nguyen
Tran, Buu Linh Vuong, Ngoc Xiem Vuong and Ching Hua
Wang in 1993.

 Date of

1993

establishment
 Scope of Work

KIDO

Group

Corp

is

engaged

in

production

of


confectionery, purified water, and fruit juice; and processing
agricultural products and foods. It is also engaged in selling
& purchasing agricultural products and foods, industrial

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products, and fabric.

 Market capitalization 8,020,476 Tr.VND
 Number of

7,741

employees
 Stock exchange

HOSE (Ho Chi Minh Stock Exchange, Vietnam)

Kinh Do Corporation (Vietnamese: Công ty Kinh Đô, KDC) (KINHDO:VN,
KDC:VN) is a business group of Vietnam with an emphasis on food production. Main
offices of the company are located in Ho Chi Minh City.
Kinh Do was established in 1993 and has gone through 17 years of formation and
development. Up to now, Kinh Do has become a system of corporations in the field of

foodstuff including: cake, candy, beverage, ice-cream, and products from milk. The
development strategy of Kinh Do is to maintain as one leading foodstuff group in
Vietnam and orient to become a multi-sector group including: foodstuff, real estate,
finance and retail in order to ensure the sustainable development in the future.
From the size of only 70 staffs at the initial establishment, up to now, Kinh Do has
total staff of over 7,741 persons. Products under the Kinh Do trademark are selling in
all provinces through a diversified distribution system nationwide including 524
distributors, 31 Kinh Do Bakery shops and 200,000 retail outlets as well as franchised
distribution systems with a growth rate of 30%/year. The products of Kinh Do have
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been sold to 35 countries; particularly Kinh Do has conquered the most difficult
customers such as Japan, USA, France, Germany and Singapore, etc….
30/06/2015, Having sold 80% of its confectionery business to Mondelez International
for around US$370 million, Kinh Do Corporation (KDC) has changed its name into
KIDO Corporation, effectively abandoning its core confectionery operations.
Shareholders agreed on the company name change but keeping the stock code intact,
KDC. A new chapter of KIDO begun as it transitioned away from the confectionary
business and established the KIDO Group in October 2015 as a Food & Flavor
company.
Scope business
Kido is diversified into

several


fields

of

interest,

listed

along

with

significant subsidiary companies:


Food, primarily confections and soft drinks, are manufactured and distributed
by the following:


Kinh Do Corporation



Binh Duong Kinh Do Corporation



North Kinh Do Food Joint Stock Company




Ki Do Corporation - ice cream and frozen yogurt



Kinh Do Saigon



Vinabico Corporation - confectionary



Finance and investment: Kinh Do Investment Corporation



Real estate: Kinh Do Land

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Vision, Missions Goal and Objective
Vision

More Flavor To Life.
Create life’s flavors through wholesome, healthy, and nutritious products and be the
most recognized company in Vietnam and South East Asia by all stakeholders.
Missions
Consumer misson
Identify and produce affordable food, snacks, beverages and to meet daily needs of
consumers. Our products are pioneering market-leading, healthy, satisfying and
conveniently available to our consumers
Shareholder misson
To allocate capital in order to maximize shareholder value over the long-term and to
manage risk in order to give certainty and confidence that investments in our business
can achieve our shareholder’s goals
People misson
To nurture and develop the skills and capabilities of our people to meet the
professional demands of their work and satisfy their personal needs. In this way we
create a KIDO family that is home to dynamic, creative, and innovative people. KIDO
is the company that can elevate an individual’s ambitions and professional skills,
through a corporate culture based on teamwork and mutual enrichment.
Our Partner Mission
To create sustainable value for supply chain partners through innovative food products

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which address consumer demand trends and exceed consumer expectations. We aim to

provide equitable returns for all and also contribute to improving processes both in
productivity and qualitative output, for sustainable development.
Community misson
To contribute to the communities in which we operate through sponsorship programs
and targeted community development activities. We aim at becoming a leader of
progress for Vietnamese society. Our impact is not only commercial, we also embrace
a social responsibility
Value
KIDo’s values serve as a compass for their actions and describe how they behave in
the world. Their core values are:


Creativeness – Renovation



Dynamic



Being vanguard



Good quality



Being trusty




Setting out a good vision (KINH DO Corporation, 2009)

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Goal and objective
Setting goals and objectives will give a company a target to aim to, therefore all
actions and efforts will be focused on attaining the objective instead of being
inefficiently used and also motivate the leaders and their employees.
As outline in its long-term development strategy, Kido’s goal is becoming one of the
Regional Leading Food Corporation, expanding presence not only in confectionery
production but also the business scopes of high potential and profit generation such as
ice cream, yogurt, milk and dairy products. KiDo set out some objectives that would
need to be fulfilled to achieve the goal. The main objective in 2016 is to maximize
benefits for shareholders, retain the market share and improve competitiveness.
The significance of Stakeholders analysis
Stakeholders can be defined as ‘individuals and groups who are affected by the
activities of an organization. The most important stakeholders can be seen as those
with most to lose from the organization’s actions, but this does not always reflect their
relative power.’. (Tim Hannagan, 2002) In case of KIDO, there are three types of
stakeholder: internal stakeholders, connected stakeholders and external stakeholders.
Each type of stakeholder has its own role and importance in the company. Besides
that, KIDO also influences on each of them variously. It is interacting relationship

between KIDO and its stakeholders.
Internal stakeholders (such as employees and management)
Managers and employees are connected closely with the company. They spend a great
deal of their time and energy for the company and also have the biggest influence on

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it. They are interested in the company’s continuation and growth because it affect
directly to their career and salary.
To meet goal of the company, KIDO has been building a professional, strong staff
which is based on the object of Perfect management, Hi-end effecting.
Managers organize and control businesses of the company. Their role is making
decisions in managing and organizing company’s activities, giving reasonable
recruitment policy, redundancy and retirement policies for employees and so on.
Furthermore, managers give out plans to develop the company and maintain the
performance. They also join in establishing the goal, objectives of the Group. In
KIDO, the managers have created the innovative culture, using cooperative
environment as a support to motivate their employees. They are working to make sure
every employee have a clearly understanding about objectives and every activity are
running forward those.
In every company including KIDO, employees are a company's best asset. 7,741
employees are the main workforce taking strategies into practice, so they have a main
effect on success of the company. Every company wants to make it the second home
where everyone strives to achieve common objectives. With that desire, KIDO Great

Family’s aim is building an ideal working environment which is solidarity, creativity
and pioneering. The responsibilities of every position and every staff is building an
environment of information sharing, harmonious coordination, absolutely completing
goal and quote excellently. KIDO pays attention to assess, identify and encourage
employees in expressing their abilities and strong points in their ways if career

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development and bringing practical effect. Besides that, KIDO also promotes
creativity and encourages innovations to improve performance, develop better policies
to retain employees and attract talent to meet company’s rapid growth and expansion
in the future.
Connected stakeholders (such as shareholders, customers, suppliers and financiers)
Shareholders play an important role in raising capital for organizations and they are
granted special privileges depending on the class of stock, including the right to vote
on matters, the right to propose shareholder resolutions, the right to share in
distributions of the company’s income, the right to purchase new shares issued by the
company and the right to a company’s assets during a liquidation of the company.
Their ownership or potential ownership interest in the company of the members of
KIDO’s Board of Directors, either through share ownership or through holding of
equity based incentives, which may lead to share ownership in the future.

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Suppliers are the ones who provide the material for KIDO to make the product.
Hence, they also influence on the company’s operation. Finding out the suppliers, who
supply a good quality materials and reasonable price is one of the most important thing
for KIDO. The quality of product will depend on quality of material. Furthermore,
prices for material are concerned with cost of production. Thus, in order to have stable
supplying as well as the lowest prices, KIDO always makes long- term relationship
with their suppliers.
Customers are the condition for existing of KIDO. Their wants and needs guide every
action of the company. KIDO Group always wants to serve the best product and
services for the customers by providing products which safe, delicious, nutritional,
convenient, and unique.
Financers provide the capital to the company if the company does not have enough
money to raise the business or take a chance to do business. KIDO has a strong
financial resource hence this kind of stakeholder seems to be less important than
others.
External stakeholders (including the community, government and pressure group)
The Government manages how the company will behaves in all business activities
because the government set up the taxes, the regulation about legal action or
employment rights and builds up the macro strategy to determine the development of
all the country. That will influence to setting a strategy of the company.
The Community is the society in the wide range of issues relevant to the KIDO
business. Nowadays, giving customer cheap price and good quality is enough, every

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company have to take responsibility for the community. The story about Vedan is a
big lesson about that. From the mid-1990s until September 2008, Monosodium
glutamate (MSG) producer Vedan's condiment factory in Dong Nai Province illegally
discharged untreated wastewater into the Thi Vai River through concealed pipes. The
pollution severely damaged local stocks of fish and shrimp. After this truth is
discovered, supermarkets, wholesalers and several other Vietnamese businesses
voluntarily decided to remove monosodium glutamate and other seasoning products
made by Vedan from their shelves to boycott the polluting firm. They said they would
sell the products again after Vedan repair the environmental problem and pay farmers’
damages. That is a big lesson for all companies in Vietnam. Hence, KIDO always tries
their best to reduce maximally their polluted substance to the environment not only to
remain and strengthen the relationship with the community around business area.
Besides that, in KIDO has continued to excel in its corporate social responsibility
when the group emerged as one of the top sponsors of charitable and social events
such as “Helping Students in Flood-hit Areas to Come Back to Their Schools”,
“Dynamic – Students Are Future Entrepreneurs”, “Street of Flowers”. In addition,
KIDO was one of the main sponsors of various major events.
HUMAN RESOURCE POLICIES
Over the last 20 years, human resources has become one of the most important asset of
KIDO. We are a diversified group of people with a broad range of experiences, joined
together with a common goal. Through professional human resources management,
and competitive remuneration policies, KIDO has built up a pool of talented


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employees that share the long-term vision of success with KIDO. This team will be
one of the primary success factors of KIDO in the future.
Human resources management and development policies are founded upon the
philosophy: “If a country’s most precious resources are the people, then an
organization’s most precious resources are the right people”. To develop the human
resources needed for future growth, KIDO has continued to source, nurture and
develop both internal and external talents to transform them collectively into one of
the most competitive teams in the market, becoming an invaluable resources for the
company. This is accomplished through:
 Satisfying human resource needs of the company based on long-term strategic
development objectives.
 Maximizing human resource potential to achieve optimal efficiency for the
company.
 Investing in training and developing talents.
 Enhancing employee to employee relationships and building successful teams.
At KIDO, we commit to nurture and develop the skills and abilities of our people to
meet the professional demands of their work and satisfy their personal needs. It value
the capabilities, attitudes, and commitments of our professional staffs. KIDO’s
continuous growth helps to ensure that compensation and bonus packages always
remains attractive to attract the right talent. To attract the best talents is to become the
best company will always be our philosophy.
KIDO HAS BUILT UP A POOL OF TALENTED EMPLOYEES


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Contact
Legal name: KIDO group
Headquarters: No. 138-142 Hai Bà Trưng, P. Đa Kao, Quận 1, TP.HCM
Phone:+84-()08-38.27.08.38
Hotline: 1900 5454 09 - 043.941.0622

Fax:+84-(0)8-38.27.08.39
Email:

Website: www.kinhdofood.com

Organization structure
KiDo is a company with a long history and development. To sustain the future growth
and expansion, we have targeted to operate with a clear corporate governance structure
that facilitates transparency and accountability

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GENERAL MEETING OF SHAREHOLDERS

Propose/ Report
Dismiss

Propose/ Report

Elect/

BOARD OF DIRECTORS

SUPERVISORY BOARD
Audit

Appoint/Dismiss/
Deliberate/Report

INDEPENDENT AUDITOR

Supervise

EXECUTIVE MANAGEMENT
COMMITTEE

Cooperate

Audit


Deliberate/ Report
STRATEGIC BUSINESS
DIRECTORS

Deliberate/ Report

INTERNAL CONTROL
Internal

Delegate/ Execute

CORPORATE
COMPANIES
(BUSINESS UNITS)

Audit
INTERNAL REGULATIONS AND POLICIES

Shareholding (Year 2015)

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% Ownership ( Year 2015)


Type

Shares

% Ownership

% Voting Shares

Local Individuals

90,940,686

35.4%

44%

Local Institutions

64,382,323

25.1%

31%

Foreign Individuals

3,765,495

1.5%


2%

Foreign Institutions

46,572,637

18.1%

23%

Treasury Shares

50,992,256

19.9%

-

256,653,397

100.0%

100.0%

Total

Sales
19.90%
35.40%


Local Individuals

Local Institutions
Foreign Individuals

18.10%

Foreign Institutions
Treasury Shares
1.50%

25.10%

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9,000,000

8,000,000
7,000,000
6,000,000

3,551,745
2,571,543


5,000,000

3,169,294

Non-current assets

4,000,000

3,225,322

Current assets

3,000,000
4,199,762

2,000,000
1,000,000

3,208,952

4,324,132

2,289,383

0

Year Year Year Year
2015 2014 2013 2012


Unit: million

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Unit: million

Year 2015

Year 2014

Year 2013

Year 2012

Net revenue

3,134,104

4,952,663

4,560,598

4,285,797


Profit before tax

6,667,769

662,958

618,618

489,928

Profit after tax

5,253,487

537,124

492,793

357,430

22,280

2,625

3,015

2,611

EPS


Unit: million

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Research problem statement
Along with the development of Vietnam's economy in recent years, the demand for
manpower is increasing. Companies are aggressively developing Human Capital,
especially in the selection of right people for the company. However, recruiting right
people is not enough, we must also know how to keep talent employees, retain talents,
especially how to retain our key staff who plays a key role in the company. With the
shortage of human capital as today, retention good people are becoming big issue of
the companies.
Low turnover and stability of staff will help organizations to save time and costs
(recruitment, training, etc.), reduction of errors (caused by new or unskilled employees
unfamiliar with the new job); create trust and solidarity within the organization. Then
staff will see the organization is an ideal, best place for them to work and demonstrate
their capabilities for long term. More importantly, the stability will help organization
to operate more efficient, produce quality of products and services, build brand
awareness, customer trust and loyalty… In order to build a sustainable workforce for
organizations, many domestic and foreign researched on Organizational Commitment
of employees.
CEO at KIDO group realized Organizational Commitment of employees is important
factor for KIDO group develop sustainably their human resource to help organization
to operate more efficient, produce quality of products and services, build brand

awareness, customer trust and loyalty… But, some factors such as Supportive and

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Non- Controlling Supervision; Supervisory Support; Role Justice; Distributive,
Procedural, and Interractive Justice are problems for human resource management at
KIDO group.
Research objectives
This purpose of this research is way to find the factors influence to the Organizational
Commitment of employees working at KIDO group.
My research will focus 3 main factors:
 Firstly: search related information and try to define what meaning
Organizational Commitment is of employees at KIDO group
 Secondly: design research model and test related factors to check influence
between factors to access strong / weak level of each factor in influence
progress.
 Thirdly:

discussing

and

proposing


recommendation

to

improve

the

effectiveness and forecast the human resources management at KIDO group in
the next time.
Research scope
The scope of research is for the entire employees at KIDO group, includes: General
Director, Vice General Directors, managers, subordinate and employees working at
KIDO group; it does not include: Chairman, Board of Directors, Shareholder,
Supervisory Board, and employees are under probation period or in maturity leave.
The survey scope is within the territory of Vietnam, which includes 500 employees of
KIDO group.

Student: Vo Ngoc Khanh Phuong (ID:19374)
111111115838)